Polish vodka producer exceeds OEE targets with rapid best practice deployment

best practice deployment
Executive Summary
Having identified some improvement obstacles that made it difficult to compete on an equal footing, Polish vodka producer CEDC introduced a rapid best practice deployment in partnership with CCi (Competitive Capabilities International). Notable improvements included an 18.5% OEE improvement within a three-month period, a significant drop in production costs and a reduction of speed losses.
Results
OEE increased from 42% to 60.5% on Line 4
The project reduced production cost of two major SKUs by 30 000 PLN per month
Total cost reduction is estimated at 50 000 PLN per month

 

Challenges

At the start of 2016, Polish vodka producer Central European Distribution Corporation (CEDC) International realised that in order to compete on an equal footing with its major competitors, it had to improve its manufacturing efficiency. Low employee engagement, moderate and reactive safety and health performance, lack of capacity planning, and quality were some of the aspects identified as improvement obstacles.

Solution

In consultation with the CCi team, site leadership decided that for continuous improvement to gain traction, they would implement a rapid deployment project to achieve quick wins. The aim of the project was to increase Overall Equipment Effectiveness (OEE) from 42% to 57% over a 12-week period. Line 4 at the Oborniki plant was selected as the pilot line.

To get the implementation process going, an in-depth performance and best practice assessment was conducted to establish the baseline maturity of the plant. Based on the outcomes of this assessment, plant management — supported by the CCi team — formulated a rapid deployment approach to best practice implementation.

Following a loss and waste analysis conducted by the Executive Leadership Committee and Site Steering Committee, the following profit improvement projects (PIPs) were identified:

  • Changeover processes and tools
  • Establishing a short-interval control and root cause problem-solving discipline
  • Establishing daily operations review (at shift and production multidisciplinary team level)
  • Supervisory administration
  • Planning rules: shift-to-shift allocation, planning standards
The aim of the project was to increase Overall Equipment Effectiveness (OEE) from 42% to 57% over a 12-week period.

Project champions were allocated for each PIP to initiate each project and take accountability for achieving the improvement targets. A lean leader to take overall responsibility was also appointed. All projects were measured in terms of work content to define the number of team members for each.best practice deployment

PIP teams were trained on how to do a loss and waste analysis on the pilot line, which helped engage the employees as they themselves discovered improvement opportunities. Through the CCi-facilitated approach, balanced KPIs were identified and defined for the operational line team.

All the relevant information pertaining to the rapid deployment project was visually displayed in A3 format so that all employees could track the progress.

Results

Quantified improvements exceeded expectations:

  • After 12 weeks of rapid deployment, OEE increased from 42% to 60.5% (3.5% above target) on Line 4
  • The project reduced production cost of two major SKUs by 30 000 PLN per month
  • Total cost reduction is estimated at 50 000 PLN per month, amounting to 600 000 PLN per annum

 

COMPANY BACKGROUND
Poland-based CEDC is the biggest vodka producer in the world, and its products include Polish-made brands such as Żubrówka, Bols and Soplica. It also owns other non-vodka brands such as Metaxa, Remy Martin, Jägermeister, Campari and Cinzano. CEDC is the leading Polish exporter of spirits, selling its products to over 50 countries. The corporation currently belongs to the Russian Standard Group.

Disclaimer
This resource has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained herein without obtaining specific professional advice. Competitive Capabilities International (CCi) does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this resource or for any decision based on it.

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